Excelerate Energy signs 15-year deal to supply LNG to Petrobangla

Excelerate Energy

09/11/2023 03:01

SINGAPORE, Nov 9 (Reuters) - U.S.-based Excelerate
Energy Inc  EE.N  said on Wednesday it had signed a long-term
sales and purchase agreement to supply Bangladesh's state-owned
company Petrobangla with liquefied natural gas (LNG) for 15
years beginning in January 2026. 
    Under the agreement, Excelerate Energy will deliver 0.85
million metric tons per year of LNG in 2026 and 2027, and 1
million tons per year from 2028 to 2040, the U.S. company said.
    The LNG will be supplied on a delivered ex-ship (DES) basis.
    Excelerate Energy developed and is operating Bangladesh's
first floating LNG terminal, and also deployed a second floating
storage and regasification unit as the country's second floating
LNG terminal. 
    The agreement with Excelerate Energy comes after Petrobangla
signed deals this year with QatarEnergy and Oman Trading
International. 
    QatarEnergy will provide 1.8 million tons a year of LNG
supply for 15 years from 2026, while Oman Trading International
will supply 0.5 million tons to 1.5 million tons of LNG per year
for 10 years, also from January 2026. 
    Bangladesh relies on imported LNG for nearly three-quarters
of its power generation, amid dwindling domestic gas reserves
and a lack of sufficient coal-fired capacity.
    But a surge in gas prices last year following Russia's
invasion of Ukraine forced Bangladesh to curb spot LNG imports
and ration gas supplies, driving down power output despite a
rise in demand and leading to frequent power cuts.
    Bangladesh's LNG imports fell 13% in 2022 from the previous
year to 4.43 million tons, according to data firm Kpler. 
    As gas prices eased from 2022's record highs, however,
Bangladesh began ramping up spot imports, and has shipped in
4.55 million tons of LNG so far this year.

 (Reporting by Emily Chow; Editing by Jamie Freed)
 ((emily.chow@thomsonreuters.com; Reuters Messaging:
emily.chow.thomsonreuters.com@reuters.net))